• Binance Coin [BNB] reacted extremely positively over the past two days of trading and gained 20.5%.
• On the daily timeframe, the market structure for Binance Coin seemed to be bullish once more, with a strong confluence of support at $292.
• The rising spot CVD underlined strong demand but Open Interest had dipped over the last 48 hours.
Binance Coin [BNB] Gains 20.5%
Binance Coin [BNB] reacted extremely positively over the past two days of trading and gained by 20.5%. A pullback as deep as $290 remains a possibility though before a sustained move higher up the charts.
Daily Market Structure is Bullish
On the daily timeframe, the market structure for Binance Coin seemed to be bullish once more. The recent lower high at $294 was beaten during the latest reversal, but the $309-mark has posed some resistance over the past 24 hours. A strong confluence of support at $292 was also observed on this timeframe.
Positive Demand Signals
The funding rate had been negative over the last two days, but it has since slowly climbed above into positive territory – Signs of a possible flip in sentiment. The rising spot CVD further underlined strong demand and yet, the price has appreciated during this time despite Open Interest having dipped over the last 48 hours.
Retracement Level to Watch Out For
A set of Fibonacci retracement levels (yellow) were drawn based on BNB’s latest surge too which showed that 78,6% retracement level lies at $276.7; almost coinciding with Value Area Low found at $274.7 . Moreover, price action from early March showed that region between $285-$292 is significant support on lower timeframes and hence could serve as potential retracement levels before price resumes its uptrend again .
Conclusion
Longer-term buyers can wait for a retracement into either around $285-$292 zone or even deeper towards Value Area Low i..e around $274 while risk-averse traders can wait for a positive reaction over three days before looking to buy and trade with trend in place .